China to Pilot Stablecoin Regulation in Free Trade Zones: Qianhai and Hainan to Test Offshore RMB Stablecoins

As global stablecoin regulation takes shape, observers see a prudent Chinese approach. A recent proposal urges pilot programs within Free Trade Zones to govern stablecoin activities with defined safeguards. Zones such as Qianhai and the Hainan Free Trade Port could host a Cross-Border FinTech Lab, establish a stablecoin whitelist, and trial an offshore RMB stablecoin concept, aligning digital trade and IP financing with upgraded blockchain infrastructure.

Crucially, the framework would enforce stringent risk controls: strict access for institutions and individuals, transparent reserve audits, and measures to monitor compliance arbitrage and capital-flow risk. The emphasis remains on orderly innovation, with disclosure standards and cross-border interoperability to sustain credibility and financial stability.